AB 736, as introduced, Cooley. State teachers’ retirement: executive positions.
The Teachers’ Retirement Law creates the State Teachers’ Retirement System and State Teachers’ Retirement Plan for the purpose of providing teachers and other specified employees with financially sound retirement plans. The law provides for the administration of the system and the plan by the Teachers’ Retirement Board and authorizes the board to appoint employees as necessary for those purposes. The law requires the board to fix the compensation of specified executive and managerial positions, including chief executive officer, chief investment officer, and general counsel.
This bill would additionally require the board to fix the compensation of the chief operating officer and chief financial officer.
Existing law prohibits, among others, a chief of staff, deputy chief executive officer, or an equivalent senior management position, for a period of 2 years after leaving that position, from appearing before or communicating with the board for the purpose of influencing actions or proceedings, for compensation, as specified.
This bill would remove that restriction from the positions listed above and instead apply the restriction to the chief operating officer and individuals who held career executive assignment positions that reported directly to either the chief executive officer or the chief operating officer.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 22212.5 of the Education Code is
2amended to read:
(a) Except as otherwise provided in subdivision (d),
4this section shall apply to the following positions in the system:
5chief executive officer,begin insert chief operating officer, chief financial
6officer,end insert system actuary, general counsel, chief investment officer,
7and other investment officers and portfolio managers whose
8positions are designated managerial pursuant to Section 18801.1
9of the Government Code.
10(b) Notwithstanding Sectionsbegin delete 19816,end delete 19825, 19826, 19829, and
1119832 of the Government Code, the board shall fix the
12compensation for the positions specified in subdivision (a). In so
13
doing, the board shall be guided by the principles contained in
14Sections 19826 and 19829 of the Government Code, consistent
15with its fiduciary responsibility to its members to recruit and retain
16highly qualified and effective employees for these positions.
17(c) When a position specified in subdivision (a) is filled through
18a general civil service appointment, it shall be filled from an
19eligible list based on an examination that was held on an open
20basis, and tenure in those positions shall be subject to the provisions
21of Article 2 (commencing with Section 19590) of Chapter 7 of
22Part 2 of Division 5 of Title 2 of the Government Code. In addition
23to the causes for action specified in that article, the board may take
24action under the article for causes related to its fiduciary
25responsibility to its members, including the employee’s failure to
26meet specified performance objectives.
27(d) An individual who held a position designated in subdivision
28(a),begin delete orend delete
was a member of the board,begin delete a chief of staff, a deputy chief
29executive officer, chief financial officer, or was in an
equivalent
30senior management position,end delete
31assignment position that reported directly to either the chief
32executive officer or the chief operating officer,end insert shall not, for a
33period of two years after leaving that position, for compensation,
P3 1act as agent or attorney for, or otherwise represent, any other
2person, except the state, by making any formal or informal
3appearance before or by making any oral or written communication
4to the board, or any officer or employee thereof, if the appearance
5or communication is made for the purpose of influencing
6administrative or legislative action or any action or proceeding
7involving the issuance, amendment, awarding, or revocation of a
8permit, license, grant, contract, or sale or purchase of goods or
9property.
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